HSBC has unveiled a US$1 billion ASEAN Growth Fund that targets six of the region’s most rapidly developing countries, aiming to enhance the capabilities of digital platform enterprises.

The HSBC ASEAN Growth Fund includes Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam where HSBC maintains a presence.

With the digital economy in Southeast Asia projected to soar from US$ 218 billion in 2023 to US$ 600 billion by 2030, growing at a compound annual rate of 16%, HSBC’s fund is set to play a pivotal role in this growth trajectory.

The HSBC ASEAN Growth Fund is designed to support a wide range of companies, from emerging startups to more established firms and non-bank financial institutions.

By offering credit facilities based on operating metrics and cash flow generation, rather than traditional financial indicators, HSBC is paving the way for these entities to achieve scale, expand their asset portfolios, and progress through their corporate life cycles.

A recent HSBC survey of 600 Southeast Asian companies highlighted the increasing emphasis on digital transformation, with 55% of Malaysian companies identifying it as a top priority. The survey also pointed to growth in ASEAN and product development as key focuses.

HSBC will also be offering digital financing and banking solutions including the New Economy Fund, aimed at high-growth businesses in Malaysia as well as trade finance solutions like HSBC TradePay and HSBC Omni Collect, which streamline payment and collection processes for businesses.

“HSBC has a proud history and strong heritage in ASEAN of supporting entrepreneurs and scaling up businesses.

 

The introduction of our latest offerings allows us to better support new economy companies in ASEAN, whether startups or scale-ups, as they expand across the region and advance along the corporate lifecycle,”

said Dato’ Omar Siddiq, Chief Executive Officer, HSBC Malaysia.

“To help capture growth in the booming digital economy, almost three quarters of the respondents (73%) said that “digitisation of operations” is becoming more important compared to 2023. More importantly, we also see 82% of the respondents planning to increase their investment in the digitalisation of their businesses in ASEAN.

 

Rapid digital adoption in ASEAN means businesses increasingly – and understandably – need fuss-free digital banking to support their growth. They want convenient and simple-to-use trade and payment solutions that would free up more time for them to focus on strategy and expansion,”

said Karel Doshi, Head of Commercial Banking, HSBC Malaysia.